Morgan Stanley to Pay $15 Million for Failure to Save E-Mails

["Richard M. Smith" <rms () bsf-llc com>]

http://www.bloomberg.com/apps/news?pid=email_us&refer=us&sid=aBoVvwOm0I6I
 
Feb. 14 (Bloomberg) -- Morgan Stanley, the No. 3 securities firm by market
value, agreed to pay a record $15 million to settle a U.S. Securities and
Exchange Commission probe into its failure to preserve e-mails. 

Morgan Stanley said in a regulatory filing yesterday that under the
preliminary agreement, it would be cited with a violation of SEC rules. The
firm is also discussing resolution of ``related charges'' with the NASD, the
Wall Street watchdog formerly known as the National Association of
Securities Dealers. 

The fine is the highest ever levied by the SEC against a firm for failing to
retain e-mails, a person familiar with the matter said. 

Morgan Stanley was penalized by a Florida judge last year for failing to
turn over e-mails to lawyers for billionaire financier Ronald Perelman.
Perelman sued Morgan Stanley claiming it knew or should have known about
accounting fraud at Sunbeam Corp., a Morgan Stanley client, and that the
firm helped Sunbeam conceal inflated sales before Perelman exchanged his
shares of camping-equipment maker Coleman Co. for Sunbeam stock. 

The Florida jury awarded Perelman $1.57 billion. Morgan Stanley has
appealed. 
 
 
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